lease purchase
individuals
Lease Purchase, or Personal Contract Purchase, is similar to Hire Purchase, but offers a variety of additional advantages.Like Hire Purchase, you choose your vehicle, pay a deposit, then make the remaining payments at a fixed rate over an agreed period, typically 36 months. Assuming all the terms of the agreement are met (most significantly the mileage allowance criteria), the vehicle is then yours.
With Lease Purchase you can reduce your monthly payments significantly by inclusion of a final payment (typically known as the 'balloon payment'). Based on the vehicle's estimated resale value at the end of the agreement, the 'balloon payment' is taken into account when the payments are calculated, making them lower than a traditional Hire Purchase agreement. This is an essential consideration if you are working to a monthly budget. At the end of the term you will have the option to part exchange for another vehicle, or make the 'final balloon payment' and keep the vehicle. Traditionally the balloon payment is also a Guaranteed Future Value which protects you further from any unforeseen issues that might affect the car’s value.
businesses
Lease Purchase tends to be called Contract Hire with businesses, and the monthly payments do not attract VAT, making this scheme particularly attractive. All the interest on payments is allowable against tax.The business can budget with confidence because the interest rate is fixed throughout the agreement. Lease Purchase offers excellent flexibility to acquire the vehicle required on terms designed to suit the budget.
- Eventual ownership
- Low initial outlay
- Flexible payment pattern
- More capital available for your business
- Interest charges allowable against tax
- Fixed interest rate
- Write down allowance
- Fixed budgeting
- Finance not subject to VAT
options
Before making your decision, you may wish to contact RyderCar Limited to find out more about the full range of financial options available.RyderCar can suggest the names of leasing companies for clients to contact directly, but RyderCar does not accept any responsibility for any business conducted by its clients with these companies.